Heating & Cooling
PSE&G Whole Home Energy Solutions and Heat Pump Incentives
Rich Jordan · August 31, 2026 · 7 min read
Heating & Cooling
Rich Jordan · August 31, 2026 · 7 min read
This is one of four utility program guides in our series on 0% utility financing for HVAC in New Jersey.
Here is how the program works and how to find someone who can do it.
PSE&G is New Jersey's largest utility, serving roughly 2.3 million electric customers and 1.9 million gas customers - much of Essex, Hudson, Union, Middlesex, Bergen, Passaic and Morris counties, plus a corridor down to Camden and Gloucester.
Unusually among New Jersey utilities, PSE&G is frequently both your gas and your electric provider. That simplifies things considerably. Where most New Jersey homeowners are juggling two utilities and two programs, PSE&G customers often have one.
If you are in Newark, Jersey City, Elizabeth, Paterson, Clifton, Montclair, Morristown, Edison or the surrounding towns, this is probably you. Check the bill.
PSE&G runs two related residential programs.
The important structural point: the rebate is not a flat amount per appliance. It is calculated from how much energy your project is modeled to save. That is why a home energy assessment sits at the front of the process - the assessment produces the model, and the model produces your number.
Practically, this means a house with poor insulation and an old furnace can earn a much larger rebate than a tight house with an old furnace, because the achievable savings are bigger. It also means bundling measures pays better than doing them one at a time. Insulation plus air sealing plus equipment models better than equipment alone.
If your project converts the house from gas or oil heat to a high-efficiency electric heat pump, there is a separate incentive stack on top:
And where a project spans both programs, combined financing can reach substantially higher than the $25,000 Whole Home ceiling.
If you are seriously considering getting off oil, this is the most generous combination of incentives available in New Jersey right now. It is worth pricing properly.
This is the single most useful thing in this article, and it is why I did not want to skip PSE&G.
That is a genuinely significant piece of consumer information and it does not get talked about, because the people writing about these programs are mostly contractors writing about their own.
Schedule a home energy assessment. This is the entry point, not an optional add-on. The assessment produces the energy model that determines your rebate.
Get the report and the recommended measures. You are not obligated to do all of them.
Choose a participating contractor. PSE&G maintains a list. Confirm enrollment directly - "we work with PSE&G" is not the same as being enrolled.
Review the incentive and financing offer, which is specific to your modeled savings.
Have the work done and inspected.
Repayment appears on your PSE&G bill as a fixed monthly line item.
To find a participating contractor, start at PSE&G's own program site, myhomeenergy.pseg.com, or call the program line at 1-855-846-2895, Monday through Friday, 8am to 8pm. They will route you to enrolled contractors in your area.
Since I am not going to be the one bidding this, here is what I would want to know if I were you, from a contractor I had never met.
"Are you enrolled in this specific PSE&G program?" Not "do you work with PSE&G." Enrolled, in the program you are using.
"Will you handle the rebate and financing paperwork, or is that on me?" There is a real difference between a contractor who files it and one who hands you a PDF.
"What is my modeled savings number and how did you get it?" Since your rebate is derived from the model, you are entitled to understand it. A contractor who cannot explain the model is a contractor guessing at your rebate.
"What happens if the post-installation inspection fails?" Ask who fixes it and who pays.
"Are you sizing this from a Manual J load calculation?" Oversized equipment is the most common expensive mistake in residential HVAC. It short-cycles, it dehumidifies poorly, it wears out faster, and it happens constantly because sizing off the old unit's nameplate is faster than doing the math. This matters more than usual on a heat pump conversion.
"What does this do to my electric bill?" For a heat pump conversion this is the question. The incentives are generous, the equipment is good, and your operating cost changes in ways that depend on your rates, your envelope and how cold your winters run. A contractor who will not model that for you is selling equipment, not solving your problem.
Current program terms run through June 30, 2027. In July 2026 the state Board of Public Utilities approved a transition plan for the year beginning July 2027 that reduces utility energy efficiency spending by about 28% and reorients incentives toward smart, grid-connected technologies ahead of New Jersey's virtual power plant rollout.
The Board also stated that income-eligible households will continue to receive efficiency services at no cost through the transition. If money is tight, ask specifically about the income-eligible path rather than the rebate path.
If PSE&G is your utility and you want to use their program, use their contractor list. That is the honest answer.
Where we can help: PSE&G's territory interleaves with Elizabethtown Gas and JCP&L in northern New Jersey, and plenty of homeowners have PSE&G for one commodity and a different utility for the other. If your electric is PSE&G but your gas is Elizabethtown, a gas furnace or boiler goes through the Elizabethtown program, and we are a preferred contractor there. Same for NJNG and JCP&L.
People get this wrong in both directions - assuming PSE&G is their only option when it is not, and assuming their gas utility handles heat pumps when it does not. Sorting out which program applies to which piece of equipment is free, and we are happy to do it whether or not there is a job in it for us.
Every figure here was verified against PSE&G and New Jersey Board of Public Utilities materials in August 2026. Terms change - confirm current terms with PSE&G before you commit.
Tell us what you need - we’ll confirm your appointment and get your home back to comfortable, fast.
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